Selling your home is no small task. There are a lot of variables at play when listing your home on the market, such as the home staging and renovation strategy, the marketing strategy, the timing strategy, and of course the pricing strategy.
Of these four elements, I’d venture to say the pricing strategy is the most critical piece of the puzzle. It can also be the most challenging piece for home owners and real estate agents to navigate and get right, especially in an ever-changing housing market.
When To Break Out The Pricing Target
One tool that we like to use with homeowners is the pricing target. If we find that a home is not receiving enough attention from potential buyers, we take a step back and factor in all of the conditions at play. If there have been no showings, and only a few drive-by lookers, we estimate that the current listing price might be 6% (or more) away from the home’s true market value.
In another instance… If we can count the number of showings on one hand, then the price might be anywhere from 3-5% higher than the current market value. If the home is in fact getting showings, but still no offers, then we can estimate being anywhere from 2-3% over market value.
While each home selling situation is different, the pricing target is a good reference for homeowners and real estate agents to focus in on, and point their aim at the bullseye – where offers are made!
How Agents Trick Homeowners
Home sellers should keep in mind that buyers will only request to see your home if they feel it is priced reasonably and within their range. This is why I cringe when I hear that a homeowner has chosen to list their home with whichever real estate agent prints the biggest price tag for their home. That’s a horrible pricing strategy! And a big disservice to you as the homeowner.
That’s why its so important to work with someone who has a deep understanding and grasp on the real estate market for your specific area. Each price range, each neighborhood, and each property type has a handful of variables that factor into the pricing target. It’s your job to work closely with your Realtor® in figuring out how to hit it spot on.
As always, if you have any questions about your particular home or neighborhood, I’d be happy to provide any help I can! Susan and I, and our team of real estate experts have a wealth of knowledge and experience selling properties on Sanibel Island. We continually seek to help both buyers and sellers get top-notch service and reach their goals by providing tools such as the Home Pricing Target above. Please don’t hesitate to call us at 239-472-1950 or email email@example.com with any questions you have!